TATA MOTORS 2018-19 Annual Report Analysis

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TATA MOTORS 2018-19 Annual Report Analysis
Fri, 5 Jul

TATA MOTORS has announced its results for the year ended March 2019. Let us have a look at the detailed performance review of the company during FY18-19.

TATA MOTORS Income Statement Analysis

  • Operating income during the year rose 3.6% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 21.6% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 8.2% in FY19 as against 10.8% in FY18.
  • Depreciation charges increased by 9.5% and finance costs increased by 23.0% YoY, respectively.
  • Other income declined by 25.1% YoY.
  • Net profit for the year declined by 416.0% YoY.
  • Net profit margins during the year declined from 3.1% in FY18 to 9.4% in FY19.

TATA MOTORS Income Statement 2018-19

No. of Mths Year Ending12 Mar-18*12 Mar-19*% Change
Net SalesRs m2,915,5053,019,3843.6%
Other incomeRs m39,57629,653-25.1%
Total RevenuesRs m2,955,0813,049,0373.2%
Gross profitRs m314,577246,643-21.6%
DepreciationRs m215,536235,9069.5%
InterestRs m46,81857,58623.0%
Profit before taxRs m91,799-17,196-118.7%
TaxRs m43,419-24,375-156.1%
Profit after taxRs m90,914-287,242-416.0%
Gross profit margin%10.88.2
Effective tax rate%47.3141.7
Net profit margin%3.1-9.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



TATA MOTORS Balance Sheet Analysis

  • The company's current liabilities during FY19 stood at Rs 1,455 billion as compared to Rs 1,432 billion in FY18, thereby witnessing an increase of 1.6%.
  • Long-term debt stood at Rs 710 billion as compared to Rs 612 billion during FY18, a growth of 16.0%.
  • Current assets fell 9% and stood at Rs 1,234 billion, while fixed assets fell 11% and stood at Rs 1,479 billion in FY19.
  • Overall, the total assets and liabilities for FY19 stood at Rs 3,072 billion as against Rs 3,314 billion during FY18, thereby witnessing a fall of 7%.

TATA MOTORS Balance Sheet as on March 2019

No. of Mths Year Ending12 Mar-18*12 Mar-19*% Change
NetworthRs m954,279601,796-36.9
 
Current LiabilitiesRs m1,432,1951,454,5741.6
Long-term DebtRs m611,995709,73716.0
Total LiabilitiesRs m3,313,5053,071,945-7.3
 
Current assetsRs m1,359,7281,234,312-9.2
Fixed AssetsRs m 1,663,3531,478,617-11.1
Total AssetsRs m3,313,5053,071,945-7.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



TATA MOTORS Cash Flow Statement Analysis

  • TATA MOTORS's cash flow from operating activities (CFO) during FY19 stood at Rs 189 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY19 stood at Rs -197 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY19 stood at Rs 88 billion, an improvement of 339% on a YoY basis.
  • Overall, net cash flows for the company during FY19 stood at Rs 68 billion from the Rs 7 billion net cash flows seen during FY18.

TATA MOTORS Cash Flow Statement 2018-19

ParticularsNo. of months1212% Change
Year EndingMar-18Mar-19
Cash Flow from Operating ActivitiesRs m238,574188,908-20.8%
Cash Flow from Investing ActivitiesRs m-262,016-197,111-
Cash Flow from Financing ActivitiesRs m20,11788,304338.9%
Net Cash FlowRs m7,30068,431837.4%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for TATA MOTORS

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs -99.5, an decline from the EPS of Rs 31.5 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 164.1, stands at -1.6 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 1.2 times, while the price to sales ratio stands at 0.2 times.
  • The company's price to cash flow (P/CF) ratio stood at -8.9 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending12 Mar-18*12 Mar-19*
Sales per share (Unadj.)Rs1,009.61,045.6
TTM Earnings per shareRs31.5-99.5
Diluted earnings per shareRs31.5-99.5
Price to Cash Flow x1.7-8.9
TTM P/E ratiox-1.6-1.6
Price / Book Value ratiox1.21.2
Market CapRs m473,895473,790
Dividends per share (Unadj.)Rs0.00.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for TATA MOTORS

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 0.8x during FY19, from 0.9x during FY18. The current ratio measures the company's ability to pay short-term and long-term obligations.

    Interest Coverage Ratio: The company's interest coverage ratio deteriorated and stood at 0.7x during FY19, from 3.0x during FY18. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

  • Profitability Ratios
  • Return on Equity (ROE): The ROE for the company declined and down at -47.7% during FY19, from 9.5% during FY19. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

    Return on Capital Employed (ROCE): The ROCE for the company declined and down at -19.4% during FY19, from 11.6% during FY18. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

    Return on Assets (ROA): The ROA of the company declined and down at -7.5% during FY19, from 4.2% during FY18. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending12 Mar-18*12 Mar-19*
Current ratiox0.90.8
Debtors’ DaysDays2523
Interest coveragex3.00.7
Debt to equity ratiox0.61.2
Return on assets%4.2-7.5
Return on equity%9.5-47.7
Return on capital employed%11.6-19.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



To see how TATA MOTORS has performed over the last 5 years, please visit here.

TATA MOTORS Share Price Performance

Over the last one year, TATA MOTORS share price has moved down from Rs 261.5 to Rs 164.1, registering a loss of Rs 97.4 or around 37.2%.

Meanwhile, the S&P BSE AUTO Index is trading at Rs 18,169.6 (down 0.2%). Over the last one year it has moved down from 24,364.2 to 18,169.6, a loss of 6,195 points (down 25.4%).

Overall, the S&P BSE SENSEX is up 12.0% over the year.

(To know more, check out historical annual results for TATA MOTORS and quarterly results for TATA MOTORS)

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Related Views on News

TATA MOTORS Announces Quarterly Results (1QFY20); Net Profit Down 58.4% (Quarterly Result Update)

Jul 29, 2019 | Updated on Jul 29, 2019

For the quarter ended June 2019, TATA MOTORS has posted a net profit of Rs 34 bn (down 58.4% YoY). Sales on the other hand came in at Rs 615 bn (down 8.4% YoY). Read on for a complete analysis of TATA MOTORS's quarterly results.

TATA MOTORS Announces Quarterly Results (4QFY19); Net Profit Down 13.3% (Quarterly Result Update)

May 22, 2019 | Updated on May 22, 2019

For the quarter ended March 2019, TATA MOTORS has posted a net profit of Rs 12 bn (down 13.3% YoY). Sales on the other hand came in at Rs 864 bn (down 5.3% YoY). Read on for a complete analysis of TATA MOTORS's quarterly results.

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